Mansi's Blog

In this article I am going to discuss Retailer Positioning and the Marketing mix (4Ps) of McDonald’s.

The story McDonald’s wants to tell:

Ray Kroc bought McDonald’s in California in 1954 and turned it into a successful fast food chain in America which later became popular globally. McDonald’s today serves millions of customers every day worldwide. The brand has adapted to international consumer preferences by building strong brand recognition to adapt itself locally and everywhere. 

Brand’s positioning:

To:	Consumers who are looking for delectable hassle-free meals with limited time and budget.
Brand is:	A fast food industry.
That:	Offers a variety of fast food and beverages for different dietary needs.
Because:	They provide a wide range of items with decent quality at very reasonable prices.The brand focuses on consistency (all McD meals taste the same within the country).They kept innovating their menu to attract customers to experience new products.
So that:	I can have familiar, good-quality food anywhere at an affordable price.

How well did McDonald’s support its marketing position? Discussing all Ps plus the retail/service experience: 

The brand responds to its customer’s needs, focus on customer service, and keeps on modifying its marketing and communication tactics. McDonald’s Marketing Mix (4P) Analysis:

PRODUCT: The PRODUCT strategy of McDonald’s comprises altering, experimenting, and adding new products to their menu regularly to attract new consumers. For instance, they have vegetarian and non-veg options for their Indian audience as beef is banned in India. Their brand and business reputation is basically determined by the quality and variety of products they offer. 

PRICING: Their PRICING strategy targets the middle and higher middle classes of society. They follow two pricing strategies: Bundle pricing strategy- Where they offer meal packages and bundles of food at discounted prices rather than charging each item individually. For ex. “Happy meals”, “Big Mac Combo Meal” etc. Psychological pricing strategy- The company sells the product at $0.99 instead of rounding it to a complete dollar and it motivates the consumer to buy more products as it looks cheaper that way. 

PLACE: The brand distributes (PLACE) its products via Restaurants, Kiosks, McDonald’s mobile apps Postmates website, and apps. This proves how they have diversified their placing and distribution strategy because they want to cover their entire audience and this is another reason the brand is holding such a reputed and strong position in the market. 

PROMOTING: McDonald’s is doing a remarkable job in PROMOTING their products. They use advertising (most significant), sales promotions, public relations, and direct marketing to make their products reach every corner of the world. This demonstrates that every business needs to grab these promoting strategies to hold a unique position in the market.

My experience at McDonald’s was all right following the below analysis:

The store was playing funky, hip-hop music to make the vibe more happening but in reality, it was distracting me. The aroma was quite tempting and it really smelled like melting cheese, frying oil, sizzling patties, and hot coffee that can actually lure customers even if they are not that hungry. Cleanliness in the stores looked like an issue to me, as it can be improved to make customers feel that they are eating in a hygienic atmosphere. The items were displayed on a huge digital display board along with their price but it was changing rapidly and customers faced difficulty in placing orders. The customer service could have been improved as it was not very crowded but the waiting time was longer.

What could have been done better to communicate the brand positioning?

There are some ways in which McDonald’s can improve their brand position. For example, they can offer some healthier and vegetarian options, but being a vegetarian myself it was difficult for me to find veg options on their menu. Other than that, the brand should focus on maintaining cleanliness because it is a serious issue and nobody wants to eat in an unhygienic environment.

Hope you enjoyed the article and it was useful to you.